With the news that the Financial Ombudsman Service (FOS) receiving millions of complaints for PPI, analysts try to estimate how long until all the remaining claims pay out. The FOS reports that it is receiving at least 1,500 claims daily for mis sold PPI. According to Which?, their estimates come that in the year 2016, the number of complaints for mis sold payment protection insurance would reach the hundred thousands mark.
Currently, the FOS received 2.2 million claims in six months of processing the PPI claim for high street banks such as Barclays, Lloyds and Santander. The banks are reported to have the biggest shares of complaints. All the banks have five-digit numbers from September and are currently within the 300,000- 450,000 mark.
The numbers, according to Which? CEO Peter Vicary-Smith, may continue to increase by the end of the year. He warns that banks should set aside more money for compensating claims.
According to experts, PPI mis selling has happened in a span of 7 years. They also estimate that banks have earned £2.6 million a year just from the mis selling of the insurances alone. The £9 billion compensation package may not be suffice to repay all complaints coming in this year. They estimate the total damage to be more than a trillion pounds for the entire United Kingdom.
The experts also state that by 2016, the numbers of complaints would be reduced. Claims handling companies would be well-regulated by then or customers would be directly called by banks to have their claim for mis sold PPI.
Fraudulent or suspicious claims handling companies have been “cold-calling” customers to make a claim for their insurances. Customers who are unsure whether or not their current financial commitments have a mis sold PPI continue to work with these claims handling companies.
Claims handling companies have issued a statement, stating that they are only accessible help and would never cold call customers. The statement said that claims handling companies are only there to provide support and help, especially for people who do not have the time to make their own claims.
They also state that they are not trying to contribute to the number of complaints and have it increase. Claims handling companies are only there to verify the suspicions of their customers and help them make an effective claim